Boz says credit crunch not too hard on Zambia

Bank of Zambia (BOZ) Deputy Governor, Denny Kalyalya, has observed that Zambia’s banking industry has not been badly affected by the global economic crisis like some other countries on the globe.

Speasking in Ndola today during a press briefing held at the BOZ pavilion at the on-going Zambia International Trade Fair, (ZITF), Dr Kalyalya said the mild impact of the global economic crisis on the Zambian banking industry is demonstrated by the unaffected commercial bank deposits.

Dr Kalyalya revealed that the deposits stood at K12.2 trillion for 2008 and 12.1 for this year at the close of the first quarter of the year in March.

He also said that there has been a steady increase in the number of commercial banks opening branches in the country which indicates that the sector is performing well.

He also noted that Zambia has not experienced closure of any bank resulting from the global economic crisis like has been the case in most countries on the globe.

He also encouraged members of he public to take mutilated mney notes back to the banks for replacement.

And the bank of Zambia governor encouraged members of the public, especially those in small-scale entrepreneursips, to buy government securities to raise money for expansion of their businesses.

Meanwhile, Bank of Zambia Asistant Director for Non-Banks financial institutions supervising department, Glads Musosha, said there has also been an increase in the number of micro finance institutions and leasing and financing institutions.

Ms Musosha further added that there has also been an increase in the number of people accessing bank loans and mortgages than before, a situation she said indicates the viability of the industry.

She, however, observed that many of the banks and the non-bank financial institutions are concentrated along the line of rail.

She said there was need for these institutions to be spread to rural areas so that more people have access to banks and financial institutions.